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Why Should
You Incorporate Your Business?
If you do well with your business, you may want to
incorporate it. There are many advantages gained by
incorporating. For one, if (and this is a BIG if, but you
never know), if you are ever sued, your personal assets
will be considered separate from your business assets. On
the off chance that anything like that ever happens, you
will be immensely thankful that you incorporated.
It works the other way too, if you are ever personally
sued, all your business assets are safe. Legally, you and
your corporation are two entirely separate entities.
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Another reason for incorporating is to
save money on taxes. Talk to an accountant about the
different ways to incorporate – if you qualify for an
S-corporation or an LLC, you may save considerably in taxes.
Plus, it’s always nice to pay your
taxes on a monthly or at least a quarterly basis rather than
owe one giant, lump sum to Uncle Sam on April 15th.
Many a business has gone bankrupt due to unpaid taxes.
Another benefit of incorporating is to convey
professionalism. Most people recognize that the abbreviation
of Inc or LLC after a company name is evidence of
incorporation. Your prospects may take you more seriously.
And every little bit helps.
You may get a few more sales just due to the fact that you
look like a real company!
So talk to your accountant today and find out if
incorporating is the right move for you to make. It takes
some time to start the process, but can be well worth it in
many instances. |
